Homeowners insurance is practically a modern-day necessity. Often, people decide to voluntarily purchase homeowners insurance for their own peace of mind. Additionally, lenders and homeowners' associations typically require a homeowner to maintain a homeowners insurance policy. Since owning a homeowners insurance policy is such common practice, the homeowners insurance market has remained very competitive. As a result, homeowners often shop around for cheaper homeowners insurance premiums. Furthermore, homeowners may obtain several quotes for insurance premiums prior to purchasing a home in an attempt to find a better rate. Homeowners insurance quotes may be obtained online, but it is often difficult or impractical to verify the information entered by a client in such a manner.
Homeowners insurance premium quotes are based on several factors including the building characteristics and location of the dwelling. For example, a frame house may demand a higher quoted premium than a brick house, since frame houses are typically more prone to fire damage. Furthermore, the location of a dwelling plays an important role in determining risk assessment, since certain locations are more prone to loss than others. A person's unfamiliarity with building characteristic terminology may result in a cheaper (or more expensive) premium being quoted. Additionally, entering an incorrect address directional (“S” instead of “N”) could severely impact the risk assessment factors and, in turn, the quoted premium. Therefore, ensuring the accuracy of online quoted homeowners insurance premiums presents several challenges.